The Iran conflict has given investors a reason to sell just about everything. The Dow is in correction territory. Oil prices have surged. Entire sectors are trading as if a recession is already here. But inside those beaten-down groups, a handful of stocks are quietly doing something different.
Joseph Hogue, CFA and host of the Let's Talk Money YouTube channel, says that divergence is worth paying attention to. Landmark research from UCLA has shown that stocks outperforming their peers over a three-to-12-month window tend to keep outperforming over the next three to 12 months. The reverse is also true. So instead of chasing discounts on broken stocks, Hogue is focused on the names showing relative strength inside the weakest corners of the market.
